Hyflux posts 35% lower half-year net profit of $22m

Hyflux, the fully-integrated water solutions company, has turned in revenue and profit attributable to shareholders of $197.9 million and $21.9 million respectively for the six months ended 30 June 2011.

The revenue recorded in first half of the year was 18% lower compared to the revenue registered in the first six months of FY2010. This was mainly attributable to the timing difference between the decrease in contributions from the Middle East and North Africa (MENA) projects which are nearing completion and the start of construction works for the Tuaspring Desalination Plant in Singapore from the third quarter of 2011.

The net profit of $21.9 million for the first six months in FY2011 was a decline of 35% from the first six-month period in FY2010 due mainly to higher finance costs, higher tax rates and higher depreciation and amortisation. The higher finance costs were the result of increased borrowings to gear up for the development of Singapore’s second desalination plant, while a more aggressive amortisation policy accounted for the increased amortisation expenses from $6.8 million in the first half of FY2010 to $9.9 million in the first half of FY2011.